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Promoter R K Damani to pare holding in Avenue Supermarts

Shares of the company - up risen nearly fivefold since its maiden offering last year - dropped five per cent following the announcement

BS Reporter 

Radhakishan Damani

Avenue Supermarts, operators of retail chain D-Mart, announced promoter would pare his stake to comply with the shareholding norms. Shares of the company — up risen nearly fivefold since its maiden offering last year — dropped five per cent following the announcement.

According to the company, Damani plans to sell 6.24 million shares (about one per cent) between May 21 and June 14 in the open market. Currently, the total promoter holding in is 82.2 per cent, which needs to be brought down to at least 75 per cent by March 2020. Damani in his personal capacity holds 39.41 per cent stake in the company.

Shares of on Friday closed at Rs 1,417, down Rs 78.3, or 5.24 per cent over its previous close. At the current market rate, the stake sale will fetch Damani Rs 8.8 billion.

Market regulator has only recently allowed promoters to sell stake through the open market route for achieving the 25 per cent minimum

Damani has given an undertaking that he would not buy any equity shares when the is underway.

First Published: Sat, May 19 2018. 03:00 IST
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